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Feb. 24, 2015, 6:39 PM
- Sandell Asset Management is reportedly pressing a familiar line with CBS: Spin off your radio stations and (in this case) merge them with Cumulus Media (NASDAQ:CMLS).
- While CBS chief Les Moonves has highlighted the cash flow and 40% margins provided by the 117 stations the company owns, Sandell suggests that in a reverse Morris Trust merger, CBS could divest an asset with a low tax base at low impact.
- Cumulus' takeaway? Scaling up to combined sales of $2.4B and a market cap of almost $5B.
- One headwind is Cumulus' leverage, at a ratio of 6.5x EBITDA after purchases of Citadel Broadcasting and WestwoodOne, while another is Sumner Redstone's grip on CBS' vote.
- After hours: CMLS +3.1%.
Aug. 30, 2013, 10:19 AM
- Cumulus Media (CMLS +4%) will acquire Dial Global (DIAL.OB +83.3%) for $260M in cash ($45M equity/ $215M to retire the company's debt).
- CMLS will also sell 53 radio stations to Townsquare Media for $238M in cash. In addition, CMLS will trade Townsquare 15 stations "in two small and mid-sized markets" for five stations in Fresno.
- The deal for Dial Global gives CMLS new "NFL, NCAA, NASCAR, Olympics, AP Radio News and NBC News" content as well as "other popular programming."
- "These transactions give us the necessary scale to provide the marketing and enterprise solutions our advertising and affiliate partners require," CEO Lew Dickey says. (PR)
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